Search This Blog

What Makes Bitcoin Money?

This is a question many have asked me - what makes
bitcoin money. I tell them, the same thing that makes money money is the same
that makes bitcoin money.

Firstly though, it’s important for us to know the
definition of money.

It is described on Wikipedia that Money is any item or verifiable record
that is generally accepted as payment
for goods and services and repayment of debts
in a particular country or socio-economic context,or is easily
converted to such a form. The online encyclopedia also makes us understand that
the main functions of money are distinguished as: a medium of exchange; a unit
of account; and a store of value.

Money’s main function is that it serves as a medium
of exchange. That’s the reason you can stretch your hand with a coloured paper
or card made out plastic in it to the guy who sells laptop and he won’t try punching
you in the face. Money though, can be anything. So far it can serve as a medium
of exchange. Money can be your gold or your wisdom. It can be your house or
your dog. It can be your maize or your cap. Money is what you say money is. If
it is needed or wanted, then it is money. If it is scarce and not littered
everywhere, then it is money.

Now, Bitcoin as a new kind of currency may have been
invented some years ago but what it fulfills is no different to what the
barter-like-method was doing many centuries ago. It is doing the same thing
cowry shells were doing thousands of years ago.

Money like we stated earlier, according to modern economics has three
functions - a medium of exchange; a unit of account; a store of value. We
already have established fact that the bitcoin technology can be used as a
medium of exchange. Bitcoin can be used to buy pizza, electronics, jewelries,
video games, game tickets, flight tickets etc.

Who accepts bitcoins?

Big organizations like Microsoft, WordPress, Dell,
Overstock, AirBaltic, Sacramento Kings and many more accept the currency.

For bitcoin to function as a medium of exchange, it
automatically functions as a unit of account. A unit of account is something that can be used to value goods and services
settle debts and make calculations. The pizza is valued and purchased using
bitcoin.

Now the third - store of value is the function of an
asset that can be saved, retrieved and exchanged at a later time, and be
predictably useful when retrieved. The bitcoin can be saved in your bitcoin
wallet (https://jostpay.com), retrieved and exchanged
at a later time.

So you see, what makes money, money; is what makes
bitcoin money.

Kindly share and follow Jostpay on social media

FB - Jostpay

Twitter - @jostpay

LinkedIn - Jostpay

Thank You.

Get link

Facebook

Twitter

Pinterest

Google+

Email

Other Apps

Comments

Post a Comment

Popular Posts

Jostpay has launched a new offline wallet storage for Bitcoin, Litecoin, and BitcoinCash in a bid to enhance the security of your coins.

Henceforth, all funds transferred into your Jostpay Cryptocurrency Wallet will be moved and secured in your offline wallet after the 1st confirmation. You can withdraw from your offline wallet to bank, send Bitcoin, Litecoin or BitcoinCash and also trade on the marketplace.

Also, be informed that JostPay API has been modified, you can receive Bitcoin, Litecoin or BitcoinCash using our POP UP API seamlessly on your website.

I have been trying to dig out a good & funny intro line to start
this article but none seem to be coming at this time. So I'm just gonna
straight to the point.

What is Bitcoin?
Bitcoin is a digital or virtual type of money. Digital in the sense
that, it is not printed like your Naira or Dollar. Virtual in the sense
that, it is not physically felt or produced like other commodities that
can serve as a medium of exchange, store of value and unit of account. I
believe we understand that 'money' is not limited to our fiat
currencies alone. Money can be anything. Anything that can perform the
main functions of money can be used as 'money'. As you can exchange your
1000Naira for a plate of eba and egusi soup. You can also exchange your
iPhone7 for that same plate of food if you want to. Am certain Mama
Kabiratu won't mind. It is satisfying the same desire.

Now, defining bitcoin technically, Bitcoin is a kind of money or
peer-to-peer payme…